Magnum Mining and Exploration (ASX:MGU) pens agreements with Mitsubishi and SDM

• Magnum Mining and Exploration (MGU) signs a memorandum of understanding (MOU) with Mitsubishi for the offtake of products from MGU’s Buena Vista green iron project in Nevada
• The deal includes direct shipping ore (DSO), iron concentrate, HIsmelt pig iron and slag, all steel plant wastes and excess biochar
• Magnum also signed a landmark agreement with Shandong Province Metallurgical Engineering (SDM) to undertake a feasibility study for the HIsmelt plant at Buena Vista
• Shares in MGU are soaring 58.8 per cent and trading at 2.7 cents at 1:58 pm AEST

Magnum Mining and Exploration (MGU) has entered a memorandum of understanding (MOU) with automobile manufacturer Mitsubishi.

The MOU concerns the offtake of all products associated with MGU’s Buena Vista green iron project in Nevada, USA.

It covers all products from the project including direct shipping ore (DSO), iron concentrate, HIsmelt pig iron and slag, along with all steel plant wastes and excess biochar.

MGU CEO Neil Goodman said the MOU gives the project a “sound basis” for moving forward to a feasibility study.

“The ferrous raw materials division of Mitsubishi is an internationally recognised and respected commodity trading team. Magnum welcomes this important strategic alliance and the surety it can bring to the project’s development,” he said.

MGU reported the MOU would spur good-faith discussions to progress to a definitive agreement. The MOU will remain in force for three years plus any mutually agreed extensions.

The company is aiming to bring Buena Vista on line in the shortest and most economical way.

Additionally, Magnum announced today it signed a landmark agreement with Shandong Province Metallurgical Engineering (SDM) to undertake a feasibility study for the HIsmelt plant at Buena Vista.

“This agreement for the feasibility study will advance the Buena Vista project’s development,” Mr Goodman said.

Mr Goodman said SDM were one of the “most experienced HIsmelt engineering companies in the world” having worked on several plants in Australia, China, South East Asia.

The feasibility study is expected to be completed within three months.

Shares in MGU soared 58.8 per cent to 2.7 cents at 1:58 pm AEST.